The U.S. Dollar Index remains in bearish territory as it trades below the 20-day EMA (102.73). The 20-day EMA is expected to act as resistance during the current relief rally.
If the price fails to break above the 20-day EMA, the index could experience a decline towards the important support at 100.82. It is crucial for the bulls to protect this level since a breakdown below it would complete a bearish head-and-shoulders pattern, signaling the start of a new downtrend.
Alternatively, if the index bounces off the 100.82 support and surpasses the 20-day EMA, it could enter a consolidation phase between 100.82 and the 200-day SMA (106.47) for a while.
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